Continuum Resources Ltd.

Continuum Resources Ltd.

March 01, 2005 10:45 ET

Continuum Resources Ltd.: Initial Metallurgical Testing of San Jose Deposit Mineralization Shows up to 97% Combined Recovery of Gold and Silver


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CONTINUUM RESOURCES LTD.

TSX VENTURE SYMBOL: CNU

MARCH 1, 2005 - 10:45 ET

Continuum Resources Ltd.: Initial Metallurgical
Testing of San Jose Deposit Mineralization Shows up to
97% Combined Recovery of Gold and Silver

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 1, 2005) - Continuum
Resources Ltd. (TSX VENTURE:CNU) is pleased to announce the results of
initial metallurgical testing on composite drill core samples from the
San Jose epithermal gold-silver deposit located in the State of Oaxaca
in southern Mexico. The test work has been completed by metallurgical
consultants Kappes, Cassiday & Associates from Reno, Nevada.

The initial testing was carried out on two composite samples of diamond
drill core from drill holes completed at San Jose by Continuum. The
drill program has targeted the depth and strike continuity of the
Trinidad ore shoot, located beneath the Trinidad shaft, in the
northern-most sector of the 3 kilometer-long exposure of the
past-producing vein system. Very encouraging results have been returned
from the drilling, as well as channel sampling on the new, Level 6
underground tunnels (see CNU press release dated February 17, 2005).

The two composite samples graded 4.56 and 8.26 gpt gold, and 455 and 507
gpt silver, respectively. The following tests were carried out: gravity
concentration; flotation; flotation followed by cyanidation of the
flotation tailings fraction.

Gravity concentration test work resulted in poor gold and silver
concentrations of between 32% and 39%. Flotation test work was conducted
at two separate grind sizes, with the best results obtained at a grind
size of 80% passing 0.106 mm. The gold and silver flotation results were
between 72% and 74% for both gold and silver in each sample. A high
percentage of coarse gold, which tends not to float strongly, was
considered as a possible reason for the modest flotation results. A
further test, which will examine a gravity circuit ahead of flotation as
a means of liberating free metal, was recommended by the consultant and
will be carried out in the near future.

Very high recoveries were obtained by subjecting the tails from the
flotation tests to cyanide leaching. Gold and silver extractions from
the tails were greater than 90% for gold and 64% to 71% for silver after
96 hours of leaching. The combined flotation with cyanide leaching tests
resulted in an overall gold extraction of 97% for gold and 97% for
silver.

The Trinidad Zone, which has been the target of drilling and underground
exploration at San Jose, has been tested along approximately 500 meters
of strike length. However, the potential target is much larger, and
includes the entire, 3 kilometer-long epithermal vein system exposed on
surface within the boundaries of Continuum's exploration concessions.
Evidence for the existence of additional ore shoots along strike to the
south includes historic exploration and production shafts, pits and
other old workings, as well as highly-anomalous gold and silver values
in outcrop.

Currently, all recent drill and underground data from the Trinidad Zone
is being analyzed by Independent Mining Consultants in Tucson, Arizona,
towards establishing a preliminary gold and silver resource. Once
established, infill drilling of the known mineralized zone will be
initiated, as well as exploratory drilling along the entire untested
portion of the vein system.

Continuum Resources is aggressively exploring for epithermal deposits of
gold and silver in the State of Oaxaca. In addition to San Jose, the
Company is conducting underground rehabilitation at the nearby,
historically-producing Natividad deposit in preparation for underground
drilling. The Company has acquired, by option and staking, over 50,000
hectares of exploration ground in the State, covering ten separate
exploration prospects which include numerous past-producing precious
metals mines.

The Qualified Person for this project, under the definition established
by National Instrument 43-101, is Lawrence Dick, Ph.D., P.Geo.
Additional supervision in the field and sampling quality assurance is
provided by Chris Osterman, Ph.D., a registered professional geologist
in the State of Arizona. Geochemical analyses were carried out by ALS
Chemex in North Vancouver, B.C.

On behalf of Continuum Resources Ltd.

Lawrence A. Dick, Ph.D., P.Geo.


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